Re: Canadian Mortgage Formula

I have created a monthly Canadian ammortization excel spreadsheet, but I
am unable to figure out how to change the it in order to have
semi-monthly, bi-weekly, or weekly schedules. My monthly formula is:

=PMT((1+A/2)^(1/6)-1,B,-C)

A=interest rate
B=payments
C=principal amount

Can anybody help me? email: sbaexec@aol.com

Thank you.
Alan B.


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AFQ
Posted from - http://www.officehelp.in

Canadian mortgages have interest compounded semi-annually. As payments are
normally monthly, you need to calculate the equivalent monthly rate in order to
calculate the proper payment. This is what your formula does: it takes the
semi-annual rate (A/2), and converts it to a monthly rate (^1/6) as there are
six months in half a year.

Converting to any other mode simply requires calculating the number of periods
in half a year. Ergo, change the 6 to 12 for semi-monthly, 13 for bi-weekly and
26 for weekly. And, of course, adjust B for the increased number of periods. You
may find it easier to have B in years, and calculate the number of periods in
your PMT function.

Does this help?

--
Regards,
Fred


"AFQ" <AFQ.2537a7@NoSpamPleaze.com> wrote in message
news:AFQ.2537a7@NoSpamPleaze.com...
>
> I have created a monthly Canadian ammortization excel spreadsheet, but I
> am unable to figure out how to change the it in order to have
> semi-monthly, bi-weekly, or weekly schedules. My monthly formula is:
>
> =PMT((1+A/2)^(1/6)-1,B,-C)
>
> A=interest rate
> B=payments
> C=principal amount
>
> Can anybody help me? email: sbaexec@aol.com
>
> Thank you.
> Alan B.
>
>
> --
> AFQ
> Posted from - http://www.officehelp.in
>

Thank you Fred, it worked perfectly.

Alan


--
AFQ
Posted from - http://www.officehelp.in